Pranav B Prem

The Authority for Advance Ruling (AAR), Andhra Pradesh, comprising K. Ravi Sankar (Commissioner of State Tax) and B. Lakshmi Narayana (Additional Commissioner of Central Tax), has held that the export of processed frozen shrimp packed in pre-packaged and labelled pouches or cartons up to 25 kilograms will attract Goods and Services Tax (GST) at 5%, irrespective of whether the supply is for domestic consumption or export. The bench observed that once the shrimp is packed in fixed, pre-determined quantities and labelled in accordance with the Legal Metrology Act, 2009, such supplies fall within the meaning of “pre-packaged and labelled goods” as defined under Notification No. 06/2022–Central Tax (Rate) dated 13 July 2022.

Also Read: ITAT Delhi Grants Relief To PVR: Entertainment Tax Subsidy Held As Capital Receipt, Not Taxable Income

Background

The applicant, M/s Sandhya Aqua Exports Pvt. Ltd., Visakhapatnam, is engaged in processing and exporting frozen shrimp. The company purchases raw shrimp from farmers and subjects it to various stages of processing — including cleaning, grading, peeling, and freezing — before exporting the final product. For ease of handling and export, the shrimp is packed in primary pouches or boxes weighing between 250 grams and 2.5 kilograms, which are then placed into secondary master cartons not exceeding 25 kilograms. Both primary and secondary packaging carry details such as type, quantity, brand name, and other specifications as per buyer requirements. The applicant sought a ruling on whether the export of such processed frozen shrimp, both in printed and plain packaging, attracts GST. The company contended that since the products are meant exclusively for export, they should not be treated as pre-packaged and labelled goods for GST purposes.

Applicant’s Submissions

The applicant argued that while the goods are exported in labelled packs as per foreign buyers’ specifications, such packaging is not meant for domestic retail sale, and therefore the Legal Metrology Act, 2009, should not apply. They further relied on rulings in:

• Asvini Fisheries Pvt. Ltd. (AAR Andhra Pradesh, 2024)

• Sprint Exports Pvt. Ltd. (AAR Andhra Pradesh, 2025)

• Devi Fisheries Ltd. (AAR Andhra Pradesh, 2025)

• Kalyan Aqua & Marines Exports India Pvt. Ltd. (AAR Andhra Pradesh, 2025)

In those rulings, it was held that GST would be leviable on the export of pre-packaged and labelled seafood or agricultural goods up to 25 kg. The applicant maintained that the Legal Metrology Act applies only to commodities intended for sale to consumers in India, not to exports, and therefore, GST should not apply to shrimp packed solely for international buyers.

AAR’s Observations

The AAR examined Notification No. 06/2022–Central Tax (Rate) dated 13 July 2022, which imposes GST on all “pre-packaged and labelled” commodities that fall under the ambit of the Legal Metrology Act, 2009. The Authority noted that the Legal Metrology (Packaged Commodities) Rules, 2011, define “pre-packaged commodity” as any item placed in a package of pre-determined quantity, which is required to bear declarations such as name, weight, and brand. Quoting from the ruling, the bench observed:“The supply of shrimps in pouches or boxes of up to 25 kg, which are duly pre-packaged and labelled as per the Legal Metrology Act, 2009, is a taxable supply which is neither exempted nor nil rated.”

The AAR clarified that the law does not differentiate between domestic supplies and exports for determining GST liability when packaging satisfies the Legal Metrology conditions. It held that all packages up to 25 kilograms, whether printed or plain, are covered within the meaning of “pre-packaged and labelled,” provided they contain pre-determined quantities and bear identifying information.

The AAR referenced the Press Release dated 18 July 2022 issued by the Ministry of Finance, which clarified that: “If specified commodities are supplied in a package that requires declarations under the Legal Metrology Act, 2009, such supplies would be treated as pre-packaged and labelled for the purposes of GST levy.”Accordingly, any packaged shrimp up to 25 kg would attract GST, irrespective of the fact that the buyer is located outside India. The bench further cited the CBIC FAQs on Pre-Packaged and Labelled Goods, which clarified that even if multiple small retail packs are sold together in a larger package, GST would still apply since the inner packs are meant for retail sale.

Ruling

After considering the submissions and the statutory framework, the AAR Andhra Pradesh ruled as follows:

The AAR concluded that such supplies are taxable at 5%, as per Sl. No. 4 of Schedule I to Notification No. 01/2017–Central Tax (Rate) dated 28 June 2017, read with Notification No. 06/2022–CT (Rate) dated 13 July 2022. It emphasized that while these exports remain zero-rated under Section 16 of the IGST Act, the taxpayer is still required to pay GST at 5% on the export supply and may claim refund of the same in accordance with law.

Also Read: ITAT Chennai: Verification By Department Mandatory Before Treating Charitable Donations As Involuntary

The AAR, therefore, held that the export of pre-packaged and labelled frozen shrimp up to 25 kg will attract 5% GST, and the same shall apply irrespective of whether the supply is domestic or for export. “Accordingly, we are of the considered view that GST would be applicable on the supply of ‘pre-packaged and labelled’ shrimps up to 25 kgs and shall be liable for GST @5%, irrespective of the fact whether it is for domestic supply or export outside the country,” the Authority ruled.

Applicant’s Name: M/s Sandhya Aqua Exports Private Limited